| Wednesday 04 May 2022 Good morning Voornaam,
Brait shareholders will be pleased to note that all conditions to the disposal of Consol Holdings to the Ardagh Group have been fulfilled. The deal value was R10.1 billion and Brait will receive R0.4 billion based on its effective interest in the deal. The proceeds will be used by Brait to pay down the revolving credit facility, taking Brait Mauritius Limited's net debt down to R2 billion.
Datatec subsidiary Analysys Mason has acquired Northern Sky Research, LLC for an undisclosed sum. The company is a global provider of satellite and space market research and consulting services. This is a really interesting play that brings the company alongside Datatec's division that focuses on solutions for the telecommunications industry. Datatec notes that 5G and satellite technologies are converging, providing an opportunity to offer expertise in both fields.
BHP has completed the sale of its 80% interest in BHP Mitsui Coal to Australian mining house Stanmore Resources. The initial payment was USD1.1 billion plus a working capital adjustment of USD200 million. A further USD100 million will be paid to BHP in six months, with a further potential amount of USD150 million under an earn-out structure. This amount would only be payable in the 2024 calendar year if conditions are met.
Anglo American is dealing with a headache in Chile, where the Environmental Assessment Service of Chile has formally rejected the environmental permit application for the Los Bronces project. This project would expand the current open pit and replace future lower grade ore by accessing higher grade ore from a new underground section. Anglo believes that the project would optimise water efficiency and improve air quality based on mitigation measures for 120% of emissions. The mining giant claims that the project was designed from the start with all sustainability considerations in mind. Anglo is assessing its options, which may include a request for a review by a Minister's Committee.
Europa Metals has released an operational update for the Toral lead, zinc and silver project in Spain. The drill rig is now on site and the 2022 resource drilling campaign is underway. Other work related to the project includes geotechnical drilling for the preferred plant location and other strategic planning that will form the basis of a future application for a mining licence at Toral.
Sibanye-Stillwater has received a credit rating from Moody's, taking the rating from Ba3 to Ba2 with a positive outlook. Moody's notes that this is thanks to the strong financial performance of the company as well as its capital allocation discipline across strategic projects, dividends and share buybacks. As a reminder, a credit upgrade i sn't a reflection of whether you should be buying more shares or not. Credit ratings are based on downside risk, whereas equity investments are based on downside risk and upside potential. Still, it's always encouraging when ratings are heading the right way.
The latest MTN subsidiary to release results is MTN Uganda, which grew service revenue by 11%, data revenue by 45% and FinTech revenue by 20.7%. EBITDA margin expanded by 40bps to 51.6%. This is yet another strong result from one of MTN's African businesses.
Onelogix is the subject of a potential delisting transaction and has renewed its cautionary announcement. There's some risk here, as the company notes that the floods in KZN have had an impact on the business that management is currently assessing. The indicative cash offer was R3.30 and Onelogix is currently trading at around R2.90. Nothing is confirmed and the offer may be reduced or could even disappear enti rely. We just don't know yet (hence the cautionary announcement).
Ascendis shareholders should note that the closing date for the sale of Ascendis Skin and Body to Amka Products has been extended to 31 May 2022. In further news, the company has appointed Dr Riyas Fadal as COO. He previously serviced in various executive roles at Life Healthcare.
Oando Plc has given earnings guidance for the 2019 financial year. No, that isn't a typo. The company is a bit like a time machine as it is catching up on outstanding financials.
Kibo Energy Plc is in the process of acquiring the Victoria Falls Solar Park in Zimbabwe from Broomfield International. Reciprocal due diligence has been completed and timelines have been extended to allow Broomfield additional time to submit updated versions of critical agreements.
If you're a Mondi shareholder, the company has confirmed t hat the dividend you will receive on 16th May is R7.6347810 per share. And there you were, thinking that only two decimals mattered in this game!
Today's feature articles are on two of the more interesting companies in the JSE mid-cap space. With a market cap of around R5.4 billion, Renergen is no stranger to the retail investor community. The company has released its financials for the year to February 2022. Combined Motor Holdings (CMH) is even smaller with a market cap of nearly R2.1 billion, but it has gotten plenty of attention in the past year and the latest financial results show exactly why that has been the case.
The latest episode of Magic Markets is a discussion on the colourful and exciting world of venture capital. Together with the team from Westbrooke Alternative Asset Management, we discussed the key characteristics of this asset class, including thoughts around why the tech sector lends itself so well to venture capital strategies. Listen to it at this link.
Don't let load shedding ruin your mood today, if you can help it!
The Finance Ghost
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